Basel III Training is a training software in order to learn Basel III impact on the financial world by learning how to calculate major financial risks using different models.
In order to face future Crisis like the 2007 Subprime crisis, the Basel Committee decided to update their Basel agreements to strengthen their financial regulations.
The renewal of Basel Accords introduces a new counterparty credit risk ratio named “Credit Value Adjustment” representing the difference between a risk free portfolio and a true portfolio value that takes into account the possibility of a counterparty to default. With Basel III implementation planned until 2019, it is important that financial student and banking professionals are formed to this new credit risk ratio.
Based on this context, Basel III Training is an open source educational software that not only enables users to apprehend this new ratio but also gives them the opportunity to test their knowledge and develop their understanding of counterparty credit risk and especially Credit Value Adjustment.
Our project interface is designed to make the user learning process easier in order to improve their progression. The formation is divided into 3 sections corresponding to CVA calculation components: Credit Exposure, Default Probability and Loss Given Default (LGD). Each of these 3 learning modules allows the user to understand CVA step by step and includes multiple choice questionnaire to verify their acquired knowledge.